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Yes Bank gains after raising Rs 1930 crore via QIP

Capital Market 

Yes Bank rose 1.83% to Rs 77.95 at 11:32 IST on BSE after the bank said it raised Rs 1,930 crore through qualified institutions placements.

The announcement was made during market hours today, 16 August 2019.

Meanwhile, the S&P BSE Sensex was down 8 points or 0.02% to 37,303.12.

On the BSE, 33.03 lakh shares were traded in the counter so far compared with average daily volumes of 105.35 lakh shares in the past two weeks. The stock hit a high of Rs 79.5 and a low of Rs 76.9 so far during the day.

The stock hit a 52-week high of Rs 404 on 20 Aug 2018. The stock hit a 52-week low of Rs 70.5 on 14 Aug 2019.

The QIP opened on 8 August 2019 and closed on 14 August 2019. The bank allotted 23.1 crore equity shares of face value of Rs 2 each to eligible qualified institutional buyers (QIBs) at Rs 83.55 per equity share.

The QIP has increased the bank's total capital adequacy ratio to 16.2%, tier I ratio to 11.3% and core equity tier I ratio to 8.6%, ensuring that the bank remains capitalized well above the regulatory limits.

The overall allocation to foreign institutional investors is approximately 34% from USA/Europe, 40% from Asia, and balance from domestic insurance companies and mutual funds highlighting a well diversified representation and demand from across the world.

"The success of the QIP is extremely satisfying given the strong global and domestic headwinds and a credit environment beset with challenges", said Ravneet Gill, managing director and CEO of Yes Bank.

He further added that the success signals a strong endorsement by the investor community of the inherent strengths of the Yes Bank franchise and its future growth prospects.

The private lender's net profit fell 91% to Rs 113.76 crore on a 9.9% rise in the total income to Rs 9088.80 crore in Q1 June 2019 over Q1 June 2018.

Yes Bank, India's fourth largest private sector bank is a high quality, customer centric and service driven bank.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, August 16 2019. 11:36 IST